Customs, Excise and Gold Tribunal - Bangalore
M/S. Ceat Ltd., Cochin vs The Commissioner Of Customs, Cochin on 14 August, 2001
ORDER
Shri G.A. Brahma Deva
1. The issue relates to levy of Cess on the imported rubber. Whether levy of Cess under section 12 of the Rubber Act read with Section 3 of the CTA, 1985 is justifiable in the facts and circumstances of the case is an issue to be considered in this appeal.
2. The appellant have imported natural rubber and the authorities have demanded Cess in respect of imported rubber under sections referred to have.
3. Sh.Nambiar, arguing for the appellant submitted that the every issue has come up for consideration before the Tribunal in the case of MRF Ltd. Vs Commissioner of Customs, Madras reported in 1997 (96) ELT 198 (T), wherein it was held that Cess as demanded could not have been levied on the imported rubber.
4. Sh.Thomas, appearing for revenue submitted that the decision referred to above was passed with reference to the imported rubber on clarification issued by the department. Since the clarification has been withdrawn by the department, there is no justification is not levying Cess on the imported rubber. In reply, Sh.Nambiar submitted that even after withdrawal of the clarification, Tribunal has passed an order in the case of TTK LIG Ltd Vs. Commissioner of Customs, Chennai reported in 1999 (111) ELT 52(T) holding that cess would not be applicable to the imported rubber. In this connection, he drew our attention to para-5 of the said order which is read as below:
"5. We have considered the rival submissions and records of the case. We find that this issue is already covered by the decision of the Tribunal in the case of M.M.Rubber Co.Ltd V. CC Vide Final Order No.2547/98 dated 8-12-1998 wherein it was held that cess would not be applicable to the imported rubber. We also find that since the import of the goods was vide B/E dated 2-2-1996 and 4-4-1996 and the Ministry of Finance circular withdrawing their earlier circular dated 22-7-1997 was issued on 8-10-1998, therefore, the effect of that circular would not be applicable to the goods imported almost two and half years earlier. Therefore, following the ratio of the final order dated 8-12-1998 noted above, we set aside the impugned order and allow the appeal with consequential relief if any as per law".
5. In the facts and circumstances of the case, since the issue has already been covered by the aforesaid decisions, we do not find any justification in imposing Cess on imported rubber. We accept the contention of the party and accordingly these appeals are allowed with consequential relief if any.
(Pronounced and dictated in open court.)